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Markets Sales Team

Trading and Financial institutions

The basic responsibilities of the Markets Sales Team are:

  • trade in markets products with customers of the OTP banka d.d.
  • establishing and developing good business relationship with customers
  • providing customers of the OTP banka d.d. with all the necessary information in scope of financial markets

We provide customers with insight into exchange rates and buy/sale of foreign currencies in real time through the free online application OTP FX Trader.

The products offered to our clients are as follows:

FX spot (buy / sale of foreign currency at a preferential exchange rate)

  • When buying / selling foreign currencies, for all transactions exceeding HRK 75,000 in the equivalent of any currency from the exchange rate, we offer a preferential exchange rate, which can be directly negotiated with the authorised persons of the Markets Sales Team.
  • Depending on market trends at the time of concluding the transaction, it is possible to make significant savings compared to the official exchange rate list of the Bank.

 

FX forward (forward buy / sale of foreign currencies)

  • Transactions related to buy / sale of foreign currency at a predetermined rate and on the defined future date (usually from 3 days to 12 months, but can be longer i.e. up to 3 years).
  • The future exchange rate is derived from the current market exchange rate and the difference in market interest rates for a particular currency pair.
  • It is used as a hedging instrument i.e. hedge against exchange rates risks and future cash flows.

 

FX swap (bridging illiquidity in a certain currency)

  • Transactions are based on agreement between two parties in regard to “swap” of currencies.

 

Swap is a simultaneous buy and sale of currencies in the present (buy / sale of foreign exchange - SPOT) with a simultaneous reverse action in the future (forward buy / sale of foreign exchange - Forward)

  • Transactions are usually arranged for up to 1 year.

 

IRS Interest rate swap

  • Refers to the swap transaction of variable interest rates for fixed and vice versa, all in order to hedge against interest rate risk.
  • Interest rate swap enables adjustment of interest mismatch of assets and liabilities, protection against increase of interest rates (swapping of variable interest rate for fixed one), but also reduction of costs incurred from interest payments (swapping of fixed interest rate for variable one) in case of a drop in reference interest rates (Euribor, Libor....).